Flights, hotels, food, and activities are the most common subjects when discussing budget travel. We often overlook the underrated and easy ways to save. We're guilty of this.
Best part is that you can do all of these before leaving for your vacation, probably even today! Plus, they don't interfere with your actual itinerary in the slightest.
Let's focus on...
- Travel rewards programs
- Travel insurance
- Transaction and withdrawal fees
- Bringing your own essentials
Get those travel rewards!
Travel rewards programs are the best, unless they're used poorly. By poorly, we mean signing up for an airlines exclusive credit card, running up debt, and not having money to sail off into the sunset.
Whether it’s for an airline, global hotel chain, or general credit card rewards, these programs can provide significant savings. Like “free trip” level savings. FREE STUFF 🤯
Make sure to sign up for rewards programs with companies you frequently use. Additionally, consider using a travel rewards credit card that offers points or miles for everyday purchases. If you know of any companies offering rewards kilometres instead of rewards miles, we'll sign up just to support. 🇨🇦
Don’t be afraid to sign up for a credit card that has introductory offers and bonuses. Even more so, don't shy away from leaving before the large annual fee arrives (assuming you keep the points or cash them in before you leave!).
Not going to lie, we did this. We had a huge year of travel in 2023 and signed up for the American Express Aeroplan credit card (in Canada). We received a huge number of Aeroplan points redeemable with Air Canada, an airline we fly with quite regularly.
The card came with additional perks such as airport lounge access, one checked bag for free, and priority boarding which made us feel like royalty. We ate and drank in the lounge for free and avoided expensive baggage fees, likely saving us the equivalent of the card's annual fee.
To thank American Express and Aeroplan for the sweet hookup, we left before our $600+ anniversary. #sorrynotsorry
Do you also have 20+ travel rewards accounts and can't keep up? We can't keep track of the times we've missed out on free points because we forgot we had an account with the company we travelled with! Check out our Travel Hub that will keep track of all of this for you!
Invest in travel insurance
This one is likely only for those who are travelling longer than ~2ish weeks. If you travel under 2 weeks, you probably have coverage from your credit card or through your employee benefits at work.
When travelling for longer, you likely exceed your trip duration limits set by your basic coverage and require specific travel insurance. BE CAREFUL, if you go over your provider's trip duration by 1 day, you likely still require additional travel insurance for your entire trip, not just the days you’re not covered. Most traditional travel insurance companies only cover the trip if it is equal to or less than their coverage period. #boooos
If you’re backpacking for a long time, look for specific travel insurance coverage from companies who specialize in backpackers. It’s a thing.
Although we travel as backpackers, traditional suitcase luggers, and visit family all over the world for varying amounts of time, we’ve found the best way to get covered is through a specific credit card.
Our National Bank World Elite Mastercard (in Canada) covers us for any trip that is 60 days or shorter. Instead of buying coverage for each of our trips, we can rest easy knowing we’re covered. Plus, for a $120 annual fee, this is much cheaper than paying for relatively more expensive travel insurance plans that are $3-$10 a day on average.
As we are travelling for 120+ days per year (and our trips are each under 60 days long), the TWO of us are both covered for under $1/day while we travel. #winning
- We use the Travel Stats and Travel Hub tools to count our travel days automatically in case you're wondering.
It’s given us peace of mind during medical visits and having prescriptions filled while abroad multiple times, getting our claims reimbursed in full every time.
Avoid foreign transaction fees
Transaction fees are the silent killers, lurking in the depths of your credit card statement.
Sure, that latte cost €3. But did you realize €0.20 of that was just for Visa to say “Oui”?
You have a couple options:
- Take out the foreign currency in cash before you leave (more on this below).
- Seek out a credit card with little to no foreign transaction fees.
Debit credit cards are ideal while travelling since you can pre-load it every few days and worry less about it if you’re pickpocketed (it can't be maxed out like a traditional credit card).
Some cards even let you load foreign currencies on your card (we see you Revolut), while some others wave the bank portion of the foreign transaction fees, leaving only the smaller Visa/Mastercard portion to be dealt with.
We use Wealthsimple’s Cash debit credit card for our travels. Foreign transaction fees are waived, except for the 1% Mastercard fee. We load it as we go and have been able to freely tap (within reason of course) in all the countries we’ve visited.
Avoid withdrawal fees
Bank withdrawal fees quickly add up if you’re using your card frequently while travelling.
Again, you have a couple options:
- Take out the foreign currency in cash before you leave
- Open a bank account that offers fee-free withdrawals abroad.
Taking out foreign currency is handy for those looking to avoid and reduce transaction and withdrawal fees. If you budget ahead, you can estimate how much of a foreign currency you will need, and convert it before you go. Order ahead at your bank for the lowest conversion fees and avoid the kiosks at the mall or the airport.
Of course, be extra careful carrying the cash after you get it. Ideally, you should carry it in a suppressed/hidden travel wallet and potentially amongst your carry-on luggage as a backup plan.
- We put $50 in each shoe during our trip. #sweatybutsafe
Opening a bank account with fee-free withdrawals abroad is a great alternative but can be hard to find and manage. Not many banks offer this perk and if they do, they might compromise with limited perks elsewhere. If you’re able to open a bank account with fee-free withdrawals abroad, even if you only use it for money spent while travelling, you’re likely coming out ahead!
Say this 10x fast... "fee-free withdrawal abroad bank account"
BYOE! (Bring your own essentials)
The number #1 thing on our packing list, above passports and credit cards, is nooch. #2 is maple syrup.
(Nooch = Nutritional yeast, an essential part of any plant-based diet).
Bring the things that are more expensive abroad. We find that sunscreen and bug spray are consistently more expensive most places we go.
For when you’re out exploring a new destination, pack some snacks for the day and always bring a reusable water bottle. Unfortunately, Stanley’s now count as one carry-on item and must be stowed in the overhead bin.
If we’re slow travelling, we also bring sunflower seeds, pumpkin seeds, hemp seeds, flax seeds, chia seeds, nut butters, our favourite protein powder, and some other essentials most places we go.
Save money, lug suitcase, see world, right?
Of course, this comes at the trade-off of packing space for clothes so do what you need to do.
Key takeaways
- Seek out and capitalize on travel rewards programs. It can make the difference between a free trip or an expensive trip.
- Don't just get travel insurance. Get smart travel insurance.
- Don't pay banks or financial service companies anything if you can help it. Avoid paying transaction and withdrawal fees.
- Bring all your expensive essentials instead of paying for them abroad. Bring the things you can't live without, especially if they're more expensive where you're visiting.
Let us know what you think in the comments below. Are there any underrated budget travel tips you think should be included?
The topic of travelling is close to home for us. Ella and I became digital nomads in 2023 in an effort to create a life centred around travel, supported by freelance work. We are fascinated by the digital nomad movement and look forward to sharing what we learn.
